RENAULT ACQUIRES NISSAN Essay Example | Topics and Well Written Essays - 750 words

RENAULT ACQUIRES NISSAN - Essay Example oblems for the management such as language problems, culture difference and also there was a lot of physical gap between both the countries physical process and also attributes of people. The alliance between both the companies did prove to be profitable for both the companies as Renault used Nissan plant in Mexico to build cars and Nissan used Renault’s plant in Brazil and also there distribution networks (RENAULT, 2014). But in the starting the management of the company faced a lot of problems related to the cultural difference among the two companies and in bringing together both the companies to work together. In 2005 Carlos Ghosn was appointed as the CEO for both the companies and the major task in front of him was to overcome the cultural differences. He was the leader of Renault which was a French company and the management of employees was easy their and he was a successful leader then, but the scenario was completely different in Nissan as it was a Japanese company. T he culture in the Japanese organizations are completely different as people in Japan look to work individually having a individualistic characteristics on the other which affected the company to work as a single organization as all the departments used to perform their duties in the perfect way but when the different department were made to work together the output used to never be a good one as there was no team work and unity among the employees. On the same way When Carlos started to close all the additional plants of Nissan and also shutting down the assembly lines to make it more concentrated process was not liked by the employees as Japanese people believe over lifetime employability plans so for them this was a big change that was made (Nissan Motor Corporation, 2014). Carlos also got the cultural difference in Nissan in the form of promotion where in his previous environment promotions were made based on the performance whereas in Japanese organization the promotions were ma de based